Paperlinx reported this morning and, although a touch higher, was looking thin and vulnerable to a correction so I sold the last few of my second tranche out at 67 (v 58.5). My worries were baseless though as the stock has firmed again but having reached my target of 70 plus I decided to sell out a few more; this time at 71 (v 55).
Gunns is still suspended and now Elders is too. It turns out that Gunns is buying a timber assets from Elders so I may have pulled the wrong rein by selling out of Elders last Friday on the close. Gunns is having an equity issue - small by recent standards in the market - and has also reported a slightly disappointing result. Guidance for this year is a little more positive so it will be interesting to see whether the stock can hold.
I've bought back into Lynas this morning at 67.5 on a resumption of the strong bullish trend. I don't want this to turn into a 3 wave correction though and will need to watch closely.
A couple of friends who are keen investors have been asking my opinion about gold lately. I've been cautious but as is often the case, these friends seem to pick turning points very well despite my advice to wait for confirmation of a trend.
A couple of friends who are keen investors have been asking my opinion about gold lately. I've been cautious but as is often the case, these friends seem to pick turning points very well despite my advice to wait for confirmation of a trend.Here's a chart of Spot Gold, priced in US dollars.
It could be ready for a surge; it's made a mini break and a breach of 970-972 would be promising. Ncm and Lgl, the two leading stocks in the sector are shaping up bullishly....
....but I've decided to stay with the cut price end of the top 200 and bought into St Barbara Mines which has just made a small buy signal and is close to making a larger one if it trades at 25. Long at 24.
I also sold out of Chc at 54 (v 53) as I had so few of them.
11.33 am Stopped out of Ehl at 78 (v 75) on a trailing stop.
The market is now starting to display a touch of vertigo as we've slipped 30 points from the early high to be at 4506, below the 4509 breakout level.
12.52 It's a fully fledged reversal day now with the market at 4485, down 5 points, and 52 points away from the early high. So far so good for my positions which are holding up relatively well. The banks are the saving grace of the market as they're strongly up on news that the bad debt cycle may have bottomed earlier than expected with the economy having outperformed gloomy predictions.
1.14 Stopped out of Gff now at 153 (v 147) as the stock has reversed again from Friday's run and I've put it in the 'too hard' basket.
3.56 The market had a brief attempt to recover but is slipping away again and it looks like a close on the lows. I'm holding onto my positions though. The new high (on the Xjo index) followed by a reversal is possible but I'm not going to jump at shadows, I'll wait until there's some confirmation. The Dow Jones Industrial Average has had 6 consecutive closes above the previous high so it seems unlikely that we'll just collapse instantly.
4.12 A rally in the Spi between 4 and 4.10 pm encouraged a few bids and the market closed down 10 points. In our region the Japanese market is flat to down but the Shanghai market is down 5% plus and that seems to have damaged the Hang Seng which is down 1.8% and the overnight US futures which are lower by about 0.6%.
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